TORONTO, Jan 2 (Reuters) - Toronto’s main stock index is seen opening the new year lower on Friday as the price of oil and gold fell, suggesting the heavily-weighted oil and materials sectors may drag on the overall index.
But despite oil price gyrations, the index may be able to overcome early weakness as financials, telecoms, and industrials have been supportive all week, paving the way for three straight days of triple-digit gains prior to the New Year break.
With very little domestic news to provide direction, the TSX may take its cue from world stock markets, which opened the new year with gains on Friday after a dismal 2008. [MKTS/GLOB]
The S&P/TSX composite index .GSPTSE finished 2008 on a positive note, up 2 percent, but it was the worst year for Canadian stocks since the Great Depression — a full-year drop of 35 percent.
Volume may be light following Thursday’s New Year break and ahead of the weekend.
Here is some of the news that may affect the market:
The oil market kicked off 2009 feebly, falling nearly 8 percent before trimming losses, partly in reaction to a sharp rally late on Wednesday. Gold followed oil lower, but base metals bucked the trend. [ID:nL2243676]
The U.S. government on Wednesday paid out the first $4 billion in emergency loans to support General Motors Corp but a parallel rescue payment for Chrysler LLC was on hold until the new year. Chrysler said it remained in talks with the U.S. Treasury. [ID:nN31357170]
There are no Canadian economic indicators on tap on Friday. In the U.S., the Institute of Supply management index for December is due at 10 a.m. (1500 GMT). It is expected to show U.S. factory activity dropped to 35.5 last month from 36.2 in November, according to the median forecast of economists polled by Reuters.
$1=$1.22 Canadian Reporting by Ka Yan Ng, Editing by Chizu Nomiyama